Gold prices hovered on the MCX at Rs 70,987 per 10 grams, hitting an intraday low of Rs 70,844. In the international market, prices hovered around $2,318.82 per ounce. Silver was priced at Rs 80,753 per kg with an intraday low of Rs 80,500 on the MCX.
In the international market, the price hovered around $27.36 per ounce.
Kaynat Chainwala, Senior Manager of commodity Research at Kotak Securities, said, “COMEX Gold prices extended declines for the second day amid ease in geopolitical tensions. However, the yellow metal pared most of the early losses, tracking weakness in the dollar index and US treasury yields after signs of weakness in US Manufacturing and Services PMI, prompting investors to rethink the trajectory of Fed funds.”
Markets are awaiting US GDP data on Thursday and the Fed’s PCE price index report on Friday for additional insights.
Acceleration in the PCE price index is expected to bolster the Fed’s case for delaying the rate cuts.
Jateen Trivedi, VP Research Analyst – Commodity and Currency, LKP Securities, said, “Gold prices continued their downward trend, experiencing another decline of Rs 850 per 10 grams in MCX. This decline was attributed to a sharp drop in Comex gold, which fell below 2300 dollars within two days.”
The decrease in gold prices was fueled by easing tensions in the Middle East over the weekend, with both Iran and Israel refraining from further drone attacks. “In the coming days, Gold prices in MCX may find support near the 70000 mark. However, if prices fall below this level, another sell-off towards 68500 could occur, as risk sentiments of the Middle East cool off,” said Trivedi.